Company To Inject Rm2bil To Acquire Land For Kulim Airport Project


 
The proposed Kulim international airport, once completed, should be able to handle 15 million passengers per year. The state had earlier expected its first flights as early as 2024. (Facebook pic)ALOR SETAR: A company has pledged to spend RM2 billion to acquire close to 10,000 acres of land in Sidam Kiri near Sungai Petani to build the Kulim international airport (KXP) and other related development, it has been revealed.
Kedah menteri besar Muhammad Sanusi Md Nor said the new company has entered into a joint venture with KXP Airportcity Holdings Sdn Bhd, a state government-linked company (GLC) and would develop the entire project.
At a press conference here, he said the company was given six months from today to raise the RM2 billion to acquire 9,841 acres (4,000ha) of land, which had already been approved for land acquisition earlier on.
The airport and other related developments announced earlier, would cost a total of RM6.8 billion.
“We have received a proposal from a company to take the private finance initiative or PFI route to acquire and develop the ‘aerotropolis’.
“We have approved this proposal in principle and with due diligence to be carried out by KXP Airportcity Holdings Sdn Bhd on this new company from time to time.
“The new company must deposit the RM2 billion at the Land and Mines Office to allow for the acquisition of the land six months from today,” he said.
Sanusi said the state government had also approved an additional 14,000 acres of land to be acquired by the government, upon request of the new company.
He said a new special purpose vehicle (SPV) company will be created between a state GLC and the new funder to negotiate for an airport licence from the transport ministry.
Sanusi said the SPV would also negotiate with the ministry to exclude the Kulim airport from an airports study which has put all expansions of existing airports and the creation of new ones on hold until 2024.
He said besides the airport construction, the new SPV would also build the Sidam Logistics, Aerospace, and Manufacturing Hub, located adjacent to the airport, so as to allow factories and logistical infrastructure to be built.
Sanusi said the entry of the new company was timely, as the state government’s request for a RM2.5 billion loan from Putrajaya to acquire land has not been viewed favourably.
The proposed airport, codenamed KXP, is to be located on a 1,700ha site near Sungai Petani and will handle 15 million passengers per year once complete. The state had earlier expected its first flights to be carried out as early as 2024. - FMT


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